Emerging smart-rotor concepts set new challenges for predictive CFD tools. In this paper, the necessary improvements and modifications of the Helicopter Multi-Block (HMB) solver were discussed and the key features of its CFD algorithm were evaluated. The HMB framework had to be extended to allow for active flow control elements on the blades and it is now possible to use HMB for the analysis of smart rotors. A simple test case was put forward demonstrating the ability of the solver to actuate two trailing edge flaps during forward-flight simulation. Results have been presented for the integrated and sectional loads for a 5/rev flap actuation. The flap actuation was combined with cyclic input, blade flapping, and twist changes. The results show that higher harmonics were present in the flow above the 5/rev input. Unfortunately, no experimental data for a flapped rotor are available and little is known about the structural properties of blades with flaps. Validation against flapped wing data is possible and this is already underway for HMB as part of the experiments to be conducted during the REACT project. The flow physics of the rotor is, however, different and the flap actuation must be validated with respect to unsteady aerodynamic influences. This is most of the times not the case for wing experiments. Based on the current development and the obtained set of results, a need is emerging for experiments in this area to provide a database for CFD validation. With worldwide interest in this research area, an experiment for flapped rotors could be part of an international research effort aiming to build a solid database for this very interesting flow case.